BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1148|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1148
          Author:   Pavley (D)
          Amended:  8/30/12
          Vote:     21

           
           SENATE NATURAL RESOURCES & WATER COMM.  :  5-3, 4/10/12
          AYES:  Pavley, Kehoe, Padilla, Simitian, Wolk
          NOES:  La Malfa, Cannella, Fuller
          NO VOTE RECORDED:  Evans

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/24/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton

           SENATE FLOOR  :  24-14, 5/31/12
          AYES:  Alquist, Calderon, Corbett, De León, DeSaulnier, 
            Evans, Hancock, Hernandez, Kehoe, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Simitian, Steinberg, Vargas, Wolk, Wright, Yee
          NOES:  Anderson, Berryhill, Blakeslee, Cannella, Correa, 
            Dutton, Emmerson, Fuller, Gaines, Harman, Huff, La Malfa, 
            Walters, Wyland
          NO VOTE RECORDED:  Runner, Strickland

           ASSEMBLY FLOOR  :  51-25, 8/24/12 - See last page for vote


           SUBJECT  :    Fish and Game Commission:  Department of Fish 
          and Game

           SOURCE  :     Author

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           DIGEST  :    This bill establishes a program for review, 
          approval, and oversight of mitigation and conservation 
          banks, to establish base fees for numerous licenses which 
          are currently set in statue, and explicitly requires 
          trustee agencies to participate in the preparation of the 
          State Environmental Goals and Policy Report.

           Assembly Amendments  change the Senate language concerning 
          mitigation and conservation banks and add other provisions 
          concerning the Trout and Steelhead Conservation and 
          Management Planning Act of 1978.

           ANALYSIS  :    This bill makes numerous changes to implement 
          policy recommendations arising out of a Strategic Vision 
          process for the Department of Fish and Game (DFG) and the 
          Fish and Game Commission (FGC) in order to improve the 
          effectiveness of these entities in protecting and managing 
          state fish and wildlife resources.  Specifically, this 
          bill: 

          1. States legislative findings and declarations regarding 
             the Strategic Vision process that was initiated as a 
             result of the passage of AB 2376 in 2010 and the need 
             for reforms to improve and enhance the capacity of DFG 
             and FGC. States legislative intent to focus more of the 
             work of the FGC on implementing state hunting and 
             fishing laws, and to enhance DFG's ability to focus on 
             managing its lands, its enforcement responsibilities, 
             its conservation programs, and enhancing the scientific 
             basis of DFG's decisions. 

          2. Requires the Office of Planning & Research (OPR) to 
             include trustee agencies such as DFG in developing the 
             state Environmental Goals and Policy Report. 

          3. Modifies and updates requirements related to sustainable 
             management of the state's hatchery program and native 
             fisheries, including the following: 

             A.    States legislative findings and declarations 
                regarding the role of hatcheries and the importance 
                of genetic diversity in managing California native 
                trout species, and that DFG seek to provide diverse 

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                recreational angling opportunities. 

             B.    Requires DFG to make publicly available on its 
                Internet website information on the inventory of 
                California trout streams maintained by DFG. 

             C.    Requires DFG every five years to update the state 
                Strategic Plan for Trout Management adopted in 2003, 
                and specifies objectives the plan shall be intended 
                to ensure, including providing angling opportunities, 
                conserving wild and native trout, and ensuring 
                environmental sustainability and overall ecosystem 
                watershed health. 

             D.    Requires the plan to be guided by specified 
                considerations including adaptive management of trout 
                populations to be self-sustaining, increasing angler 
                satisfaction, ensuring appropriate age distribution 
                of wild trout, and establishing ecologically and 
                environmentally sustainable hatchery and stocking 
                practices for native trout. 

             E.    Requires DFG to prepare trout management plans 
                consistent with the Strategic Plan for Trout 
                Management, for all wild trout waters within three 
                years following designation of a wild trout water by 
                the FGC, and to update the plans every five years. 

             F.    Requires priority to be given for stocking native 
                hatchery-produced species where stocking is 
                determined appropriate by DFG.  Provides that waters 
                where stocking is not appropriate include waters 
                where stocking would adversely affect species listed 
                under state or federal endangered species acts.  
                Requires hatchery-produced trout to be stocked to 
                support sustainable angling opportunities and fishing 
                access, including urban fisheries. 

             G.    Requires DFG to ensure that trout stocked for 
                recreational purposes are unable to reproduce, with 
                specified exceptions. 

             H.    Requires DFG to form a strategic trout management 
                team to oversee trout management statewide pursuant 

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                to the Strategic Plan for Trout Management.  Requires 
                DFG's Strategic Plan for Trout Management to be 
                reviewed by the Strategic Trout Management Team, the 
                hatchery operations committee, and an ad hoc peer 
                review committee to ensure sound management, improved 
                genetic diversity, and best available science. 

             I.    Deletes obsolete provisions relating to state 
                hatchery production goals and clarifies that the 
                state hatchery production goal is 2.75 pounds of 
                released trout per sport fishing license sold, and 
                that a predominant number of released fish be 
                catchable size or larger. 

             J.    States that at least $2 million dedicated under 
                existing law to the Heritage and Wild Trout program 
                from the Hatcheries and Inland Fisheries Fund (HIFF) 
                may be used for development of trout management 
                plans, and that up to 25% may be expended for 
                watershed restoration projects, resource assessment 
                and scientific inquiry.  Clarifies that funds from 
                the HIFF may be used for development of the state 
                Strategic Plan for Trout Management, and states that 
                funding for Heritage Trout Waters is a priority for 
                the HIFF. 

             K.    Requires DFG on an annual basis to invest in 
                hatchery facility improvements and rehabilitation to 
                ensure progress towards achieving hatchery production 
                targets. 

             L.    Authorizes DFG, beginning January 1, 2015, to 
                obtain hatchery-produced fish from any 
                California-based hatchery if all of the following 
                criteria are met: 

                (1)      The hatchery production goal of 2.75 pounds 
                   of released trout per sport fishing license sold 
                   is not met; 

                (2)      DFG, following an inspection, determines the 
                   hatchery is in compliance with standards that are 
                   as stringent as those in effect at state 
                   hatcheries in order to minimize the risk of the 

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                   spread of disease or invasive species; and, 

                (3)      The cost per pound of the fish provided by 
                   the hatchery does not exceed the cost of state 
                   hatchery fish calculated equivalently, including 
                   transportation costs. 

                (4)      Appropriates $1 million from the Hatchery 
                   and Inland Fisheries Fund to DFG for capital 
                   outlay expenditures necessary for improvements to 
                   state hatcheries to achieve hatchery fish 
                   production goals. Requires DFG to prioritize 
                   capital outlay investments based on expected 
                   improvements in hatchery egg and fish production. 

          4. Establishes a program for review, approval and oversight 
             of mitigation and conservation banks as follows: 

             A.    States legislative findings and declarations 
                regarding the values and importance of conservation 
                and mitigation banks in providing habitat lands which 
                are managed to fulfill mitigation requirements, and 
                the need for greater transparency to ensure 
                mitigation requirements are fully met and to fund the 
                regulatory costs of DFG related to mitigation and 
                conservation banks. 

             B.    Requires any person seeking to establish a 
                mitigation or conservation bank to submit a bank 
                prospectus to DFG with a fee of $10,000 to cover the 
                costs of DFG's review. Specifies what must be 
                included in a bank prospectus. Establishes procedures 
                for DFG's review and approval of a bank prospectus. 

             C.    Authorizes any person interested in establishing a 
                bank to submit an optional draft prospectus for 
                review by DFG, accompanied by a fee of $1,500 to 
                cover DFG's costs, with total review fees for a 
                prospectus not to exceed $10,000. 

             D.    Once the bank prospectus is approved, allows the 
                applicant to submit a bank agreement package to DFG 
                consistent with the prospectus and include specified 
                information. Requires payment of a $25,000 fee to 

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                cover DFG's review. Establishes procedures for DFG's 
                review and approval of the package, including 
                authority for assessment of additional fees if 
                necessary to cover DFG's review of new information or 
                substantial changes requested by the applicant. 

             E.    Provides similar procedures and fee requirements 
                for amendments to approved banks. 

             F.    Prohibits any bank from being operative, vested or 
                final, and prohibits any bank credits from being 
                issued, until DFG has provided written approval of a 
                bank and a conservation easement has been recorded on 
                the site. 

             G.    Requires DFG after a bank is approved to conduct 
                compliance review and to establish and maintain a 
                database, available on DFG's website or another 
                website that is linked to DFG's website, which allows 
                bank sponsors to update information about mitigation 
                and conservation banks. 

             H.    Requires DFG to provide an annual report to the 
                Legislature on the mitigation and conservation bank 
                program. 

             I.    Requires DFG to collect a total payment of $60,000 
                per bank to cover all or a portion of DFG's bank 
                implementation and compliance costs, with payments 
                due following credit releases. 

             J.    Requires DFG to annually adjust mitigation and 
                conservation bank fees to reflect changes in the 
                Implicit Price Deflator, and requires DFG to adopt 
                guidelines and criteria to implement mitigation and 
                conservation bank requirements. The guidelines shall 
                incorporate information from a 2011 Memorandum of 
                Understanding the state entered with federal agencies 
                for purposes of jointly establishing a coordinated 
                approach to mitigation and conservation banking in 
                California. 

          5. Makes the following changes relating to fees charged for 
             fish and game activities: 

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             A.    Requires FGC to adjust license, stamp, permit and 
                tag fees for inflation based on changes in the 
                Implicit Price Deflator, pursuant to Section 713 of 
                the Fish and Game Code, at least every five years. 

             B.    Requires, with regard to the fees for lifetime 
                sportsmen's licenses, sport and commercial fishing 
                licenses, commercial fish business and vessel 
                licenses, hunting licenses, ocean sport fishing 
                enhancement stamps, commercial fishing enhancement 
                stamps, and trapping licenses that the FGC adjust the 
                license fees to recover, but not exceed, all 
                reasonable administrative and implementation costs of 
                DFG and the FGC relating to those licenses. 

             C.    Provides that except where the Fish and Game Code 
                expressly prohibits the adjustment of statutorily 
                imposed fees, the FGC may establish a fee or the 
                amount thereof by regulation. Requires that fees 
                established by the FGC shall be in an amount 
                sufficient to recover all reasonable administrative 
                and implementation costs of the FGC and DFG relating 
                to the program for which the fee is paid. Authorizes 
                the FGC to establish a fee structure to phase in fee 
                adjustments to provide for full cost recovery within 
                five years. 

             D.    Clarifies the DFG's authority to establish and 
                adjust fees for CEQA filings, streambed alteration 
                agreements, and scientific collector permits. 
                Requires that the fees be sufficient to recover all 
                reasonable administrative and implementation costs 
                and authorizes DFG to establish a fee structure to 
                phase in fee adjustments to provide for full cost 
                recovery within five years. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Assembly Appropriations Committee: 

          1. Unknown workload costs to DFG and the commission to 
             review and adjust fees as needed (special funds). These 

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             costs should be covered by fee revenue, which DFG and 
             the commission can set to ensure they do so. However, 
             there may be a lag between the time DFG and the 
             commission develop and adopt fees and the time any 
             resulting revenue increase is realized. It is not clear 
             DFG or the commission has the resources to cover these 
             activities from other funds until they receive 
             additional fee revenue. 

          2. Ongoing costs of an unknown amount, but potentially 
             exceeding $1 million dollars annually, to DFG to mark 
             hatchery-produced trout (special fund). 

          3. Ongoing cost in the tens of thousands of dollars to DFG 
             to support the strategic trout management team (special 
             fund). 

          4. Significant costs, likely in the low millions of dollars 
             annually, to DFG to plan, review, establish and monitor 
             conservation and mitigation bank programs (special 
             fund). These costs should be fully covered by the fees 
             the bill authorizes DFG to collect from applicants. 

           SUPPORT  :   (Verified  8/31/12)

          Green California
          Humane Society of United States
          Humboldt Baykeeper
          Klamath Riverkeeper
          Laguna Ocean Foundation
          Monterey Bay Aquarium
          Natural Resource Banking Coalition
          Natural Resources Defense Council 
          Nature Conservancy
          OCdiving.com
          Ocean Conservancy
          Orange County Coastkeeper
          Otter Project
          Paw Pac
          Russian Riverkeeper
          San Diego Coastkeeper
          Santa Barbara Channelkeeper
          Save Our Shores
          Trout Unlimited

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          WiLDCOAST
          Wildlands Conservancy


           ARGUMENTS IN SUPPORT  :    Supporters of this bill note the 
          long overdue need for reform of the state's wildlife 
          management and in particular highlight support for the 
          provisions transferring responsibility for ongoing 
          management of California's MPAs, now that the network of 
          MPAs has been established, to the OPC. Opponents in 
          particular objected to provisions included in prior 
          versions clarifying strict liability for fish and game code 
          violations and creating a private cause of action. The 
          private cause of action and strict liability provisions 
          were deleted from this bill in the Assembly Appropriations 
          Committee. As a result of the amendments taken, opposition 
          was removed by the Realtors, Western Growers, California 
          State Association of Counties, Regional Council of Rural 
          Counties, Civil Justice Association, California Central 
          Valley Flood Control Association, El Dorado County 
          Irrigation District, Valley Ag Water Coalition which are 
          now neutral. 


          DLW:m  8/31/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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